Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
“We are making good progress on our plan to turn our business around: we’re not there yet,” he said in an email to staff last week.
“Some tough calls are still needed to put us on the right path.”
Fonterra employees won’t be paid bonuses for the 2018-19 year. No salaried staff earning over $100,000 will get a pay rise in 2019-20.
A remuneration review will still occur for salaried employees earning under $100,000. Waged employees who are part of a collective agreement aren’t impacted.
Hurrell says this has been a tough call, but it’s also the right one.
“Together as a cooperative we must do what’s right, working together to reset our business and get us back to a position where we can be proud of our financial performance.”
He thanked staff for their hard work in helping lift performance and reset the business.
